Financial Goals You Should Set Before 30

Although I am not rich yet but then I reflect on my life on a regular note and I have looked into how I can make my life better. I am sure so many of us are familiar with the phrase; “Life begins at forty” but then, what do we do before forty? Should we say because we are looking into a life that will begin at forty, then we shouldn’t do anything before then? The answer is no!!

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There are so many financial plans that should be in place even before you get to the age of 30, and in this post, I will be looking into financials goals you should have accomplished before the age of 30 years.

Reaching any financial goal isn’t started yet until you can be accountable for yourself and your actions. This makes it very true to the fact that before the age of 30, you should be living alone and taking responsibility for your thoughts and actions. If you are taking care of a widowed mother or a sick parent, this is a very excusable reason to live with your parents, but if your parents are doing fine, and you just choose to live and depend on them, then you are not ready for a financially free life. Some people might see it as a wrong idea, and I am not against anyone’s thought, but I will give a scenario of a case where a person depends on his/her parents for feeding, while being paid at their place of work. The person would never think of feeding as an expenses, the person wouldn’t worry about rent, and the person wouldn’t worry about paying for utility, because the parents cover this expenses. This will make the person live a life above their means and will not help them budget their life.

When building a financial life, and setting financial goals, having a three to six months emergency fund is important. Living without anything in case of an emergency is very bad, and could leave you dried out when there is an emergency. A lot of people leave on credit and may have lots of debt but it is very important to know that having an emergency savings is very important. While having an emergency savings, it is good to ensure that the money can be accessed easily when needed.

It is very important to be able to calculate your monthly income and expenses. Whatever is surplus should be paid into investment, savings, emergency, and yourself. Ensure to know this and work with it. Budgeting can be good, but sometimes, there could be more than required budget in expenses which cannot be left to roll over, but being able to use the remaining funds in the right way is very important.

Debt is one very bad lesson to learn the wrong way, especially when you are in a bad debt. If you aren’t getting into debt for businesses which could be covered up by another income from a business, then do not get into debt. Credit card debt is very bad, and it is very expensive. I am not saying you shouldn’t have credit, because you need a good credit score to purchase homes, and in some cases for employment so when you would live on credit, ensure you are not accumulating from credit card companies. Aim to have a credit score of 800, so you can be able to purchase whatever you want.

Ensure that in your 30, you have an insurance policy. This will help you protect yourself and your loved ones in the case of a negative occurrence. While doing this, never forget that you need to be established.

Being established means having an increased source of income so as to take you out of the poverty line. This income could come from career, business, jobs, and investments. Try to grow your income and work on growing your income on a daily basis. Staying at one point for more than three years isn’t a good idea, so try to grow your income.

In conclusion, your income is a combination of your value and your time, or other people’s time which you pay for. Do not let your financial life start after thirty, it is important to start it before the age of 30.

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